The union finance minister Mr. P. Chidambaram has assured the government will announce a number of decisions in coming days to boost the insurance sector and the mutual fund industry.
Speaking to reporters, Mr. Chidambaram said, “Both the mutual funds industry and insurance sectors have turned sluggish. In the next few weeks, we will announce a number of decisions to attract more people to invest in mutual funds, insurance policies and other well-designed instruments."
“The government will also work towards removing supply side bottlenecks in the manufacturing and export sector", he added. Further he said Manufacturing and exports are two key drivers of the economy. Both have registered low or negative growth in recent months. It is imperative that we reverse this trend.
According to the finance minister, “investment is an act of faith, it is a must to remove any apprehension or distrust in the minds of investors."
Aiming to remove the perceived difficulties in 'doing business in India', including fears about undue regulatory burden or regulatory over-reach, the government will improve communication of policies to potential investors, he said.
Domestic companies, especially state-owned companies, which have large cash balances, will be encouraged to restart investment. And, the proposals pending with the Foreign Investment Promotion Board will be processed and the decisions will be taken efficiently.
The implementation of large infrastructure and other projects with an investment of Rs.1,000 crore or more will be monitored closely under by the cabinet committee of economic affairs (CCEA), the minister said.